NAICOM releases guidelines for Takaful, Ratakaful, Regulatory Sandbox

The National Insurance Commission (NAICOM) has released three new market guidelines for insurance operators in Nigeria.

The guidelines are Insurance Regulatory Sandbox Operational Guidelines, Market Conduct Guidelines for Takaful and Retakaful Insurance Operators and Enterprise Risk Management Framework for Takaful and Retakaful Operators in Nigeria.

Rasaaq Salami,

NAICOM’s Head, Corporate Communication and Market Development, said, “The guidelines are part of our strategic objective to drive innovation of products and services, ensure operators are professional in the conduct of their businesses in line with best practices.

“The commission expects all operators to ensure compliance with the new guidelines to the benefit of all stakeholders. Attached are the various guidelines for your necessary action.”

Regulatory Sandbox refers to a consciously established relaxed regulatory environment for the testing of innovative products, services, business models, channels of distribution subject to regulatory discretions and set parameters that have potential of improving insurance inclusiveness and service efficiency in Nigeria.

The Enterprise Risk Management Framework for Takaful and Retakaful Operators in Nigeria Guideline is intended to establish minimum risk management standards for

Takaful Insurance Operators (TIOs) in Nigeria. This guideline discusses how management of risks inherent in the TIO shall be implemented as a TIO is exposed to risks that may affect its ability to achieve its objectives or even its continuing existence.

On the Market Conduct Guidelines for Takaful and Retakaful Insurance Operators, set out minimum standards required from Takaful Insurance Operators in their dealings with participants/ policyholders, shareholders and other stakeholders.